Russian banks accept unusual practice of foreign colleagues

Russian farmers now have the opportunity to ask and get bank loans secured by non-standard assets such as livestock: cattle, pigs and chickens, rather than traditional assets like land, real estate, etc. To date, the Federal Notary Chamber reports more than 50% of applications for a loan using these types of credit safety assets. Thus, in Italy, for example, a lender can provide a loan for products such as certain types of cheese that can age in the vaults of a bank for many years until the loan is paid back.

Currently, the provision of loans for cattle is more popular among large agricultural companies, the main reason being that livestock must meet the requirements of the bank for specific types of credit safety assets. According to Sergey Yushin, head of the National Organization of Producers, this trend can be explained by the fact that cattle is the main asset of fast-growing farms specializing in cattle breeding. In fact, the dead weight of the animal and its market value are the actual assets of the credit safety, and not the animal itself.

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